Oil Moves Cautiously, Global Supply Plays a Role
Oil prices rose after three consecutive days of declines, with market attention focused on developments in negotiations between the US and Iran. Brent neared $105 per barrel, while WTI hovered around $98, though both are still down more than 4% this week.
Iran has called the latest US proposal a partial bridging of differences between the two sides, but comments by the Iranian Supreme Leader regarding uranium storage and a dispute over tolls in the Strait of Hormuz have raised uncertainty about a breakthrough in negotiations. This makes it difficult to assess whether a deal is close, especially after threats of escalation have emerged in recent days.
This uncertainty is impacting oil prices as traders try to predict when energy flows through the Strait of Hormuz will fully recover. The conflict and supply cuts have caused global crude and product inventories to fall at a record pace, according to Goldman Sachs Group Inc.
Rebecca Babin, senior energy trader at CIBC Private Wealth Group, said that constant news fluctuations limit risk in both paper and physical markets. Buyers who typically hold prices low are reluctant to enter, while physical market participants prefer to reduce stocks and wait rather than chase expensive cargoes.
The International Energy Agency (IEA) has stated its readiness to release additional stocks if needed, following its first release in March, said Executive Director Fatih Birol. This adds support to stable oil prices in recent days.
Brent for July delivery rose 1.8% to $104.46 per barrel at 8:17 a.m. in Singapore, while WTI for July rose 1.3% to $97.65 per barrel, reflecting still-cautious market sentiment amid geopolitical tensions. (asd)*
Source: Newsmaker.id
